Playtech Officially Enters Forex Market With TradeFX Acquisition
Playtech exceeded their expected earnings in 2014 and have plenty of cash to aggressively embark on an acquisition spree in order to diversify their core business and pursue cash generating business. In February we reported on their entry into social gaming with their acquisition of YoYo Gaming. Today Playtech announced they will be entering the forex market with their acquisition of TradeFX Limited for €250 million, In terms of the deal an initial payment of €208m will be paid followed by an additional €42m by December 2017.
TradeFX is the owner entity behind Markets.com and their platform technology. They recorded a $27.6 m in Q1 revenues showing a 87% year-on-year growth. They has over 23,900 active customer and 10,800 first time depositors.
TradeFX was founded in 2009 and has over 50 staff members globally. They are both a trading platform provider and binary options broker. CEO of Playtech, Mor Weizer commented on the acquisition,” I am delighted to announce the proposed acquisition of TradeFX which provides entry into a highly complementary new market vertical where our combined operational superiority will enable exciting growth opportunities. In addition to being immediately and significantly earnings enhancing, the payment terms for the acquisition are weighted towards future financial performance of the business. TradeFX’s proven management team has a strong cultural fit with our business and is incentivised to stay with the enlarged Group. We look forward to working with them to create additional shareholder value.”
Weiser went on to reiterate that Playech have plans to expand and seek out further acquisition opportunities. He said,” The acquisition adds weight to the strong momentum with which we have started the year and which has continued throughout the first quarter. Following the acquisition, Playtech will retain significant resources to continue to pursue further acquisition opportunities. We will provide a further update on trading performance in our quarterly trading update which will be announced later this month.”